TNAG-0164-FCO40-200-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 162

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5. WE HAVE AGREED TO EXAMINE ALL STATISTICS, BUT ON UNDERSTANDING

THAT NO NEW RESTRAINTS CAN BE AGREED. WE HAVE NOT YET DISCLOSED

THAT WE ARE PRDPARED TO CONSIDER ADDITIONAL COTTON RESTRAINTS,

SINCE WE ARE AT THIS STAGE MERELY EXAMINING STATISTICS, NOT

NEGOTIATING.

6m ON NON-COTTON, THE CASE FOR CONTINUING EXISTING RESTRAINTS

IS STRONG. I THINK IT WOULD BE REASONABLE TO GO AS FAR AS (C) OF PARA. 4 OF MY TELEGRAM 301. SWEDISH IMPORTS FROM HONG KONG

IN 1968 JUMPED FROM Ø TO 20,000 PIECES (40% OF IMPORTS) AND

SWEDES CAN LEGITIMATELY CLAIM NEED TO CLOSE THIS REMAINING LOOPHOLE.

IN VIEW OF LATEST STATISTICS, HOWEVER, I SEE NO CASE YET ON MEN'S

AND BOYS' ACRYLIC KNITWEAR BUT ALSO SEE NO HOPE OF (D)(11).

CASE UN BLOUSES IS NOW VERY STRONG. IN 1968 IMPORTS FROM HONG

KONG WERE DOUBLE DOMESTIC PRODUCTION(REVERSE OF POSITION

IN 1965) AND 99% OF IMPORTS.

7. 1 INTEND, THEREFORE, AS A FALL-BACK POSITION, TO INDICATE

THAT I CAN AGREE TO ADDITIONAL RESTRAINTS FROM 1 JULY 1969

ON

(A) WOMEN'S AND GIRLS' DISCONTINUOUS ANORAKS SEMICOLON

(B) SYNTHETIC BLOUSES,

PROVIDED SWEDES WILL BE CONTENT WITH THAT PLUS POSSIBLY SOME

ADDITIONAL COTTON ITEMS (RESTRAINT OR E/A'S) AND E/AS FOR

OTHER NON-COTTON ITEMS. IF THIS WILL NOT SATISFY THEN THEN I

EXPECT THEM TO PROPOSE THAT CONSULTATIONS BE ADJOURNED

AND THAT WE MEET AGAIN IN STOCKHOLM.

WITH GENUINE RELUCTANCE

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